International Business 303 - ***REVIEW***

What is the important effect of a regional trade agreement for multinational companies? The free movement of goods from country to country. The synchronized products standards. The simplified tax regimes. All of the above. None of the above.

All of the above.

PEST(LE), and VRIN are models used during which phase of the strategy process? Analysis Assessment Formulation Implementation

Analysis

Individuals who argue against outsourcing in favor of domestic jobs, are taking which argument: Capitalistic Anti-capitalistic Globalization Anti-globalization

Anti-globalization

Which of the following is detrimental to an ethical business setting? Operating in multiple countries Encouraging company managers to practice ethics Assuming that ethics are universal around the world Remembering that not all socially responsible firms are ethical Frequently auditing the activities of foreign managers

Assuming that ethics are universal around the world

For which of the following products would localization be most appropriate? Gasoline - for cars Computer - technology item Cake - cultural food item

Cake - cultural food item

Ethics in a country are most commonly influenced by: politics economy culture

Culture

__________ impacts a product's attributes (especially food), drink, and music. Location Nationality Demographics Culture Generation

Culture

Which of the following is an example of a regional trade agreement: EU IMF WTO

EU

The ongoing development of which tech change in AI will change consumer interactions in a positive direction: Emotional understanding Development of biases Bank interface

Emotional understanding

Tariffs and quotas are used by governments to increase the appeal of __________. globally dispersed production corrupt organizations FDIs and licensing outsourcing and offshoring foreign capital investments

FDIs and licensing

Artificial Intelligence has great applications in IB as it is incapable of any form of bias. True False

False

Which of the following policies are designed to influence outward FDI? Mergers and acquisitions, off-shoring production, and competitive design Democracies, socialized programs, and totalitarian states Foreign risk insurance, capital assistance, tax incentives, and political pressure International terrorism, economic unity, and common currency Educational unification, currency exchange, and language equivalency

Foreign risk insurance, capital assistance, tax incentives, and political pressure

Which of the following modes of entry into foreign markets can result in a lack of control over quality? Exporting. Franchising. Turnkey projects. Wholly owned subsidiaries. Joint ventures.

Franchising.

Which of the following would you use to get the best comparison of living standards across multiple countries? GDP GNP GPI GDP PPP

GPI

Unemployment can increase in which country if the FDI investors turn operations over to the foreign country Home Host

Home

Of the following, which is an advantage to an ethnocentric staffing policy? It promotes cultural diffusion. Its implementation is low cost. It helps strengthen management networks. It helps transfer core competencies to a foreign operation. It helps the human resources department to be organized efficiently.

It helps transfer core competencies to a foreign operation.

What does the Internet contribute to the world's economy? It is easier for buyers and sellers to discover one another, regardless of location. Businesses are able to sell their products at higher prices, which helps their profit margins. International trade is regulated by the Internet. It helps reduce trade tariffs. Governments can gather information on Internet buyers.

It is easier for buyers and sellers to discover one another, regardless of location.

What is a disadvantage to using a geocentric staffing approach? Cultural myopia makes it hard for the company to control management. It is expensive to train and relocate managers from country to country. Host country nationals are unable to rise above the positions offered at their location. There is a communication gap between managers at the foreign location and the home location. The lack of management transfers leads to a lack of integration between corporate headquarters and the home location.

It is expensive to train and relocate managers from country to country.

What is "the gold standard" in relation to monetary standards? It is the current currency that is exchanged at the highest global rate. It is the U.S. dollar. It pegs currencies to gold and guarantees convertibility to gold. It pegs currencies to gold content in coins (10k, 14k, 18k, and 24k). It pegs currencies to the value determined by the IMF.

It pegs currencies to gold and guarantees convertibility to gold.

The theory that factor prices will level out around the world as globalization increases is known as: globalization anti-globalization Law of One Price Law of Factor Prices

Law of One Price

Commonly, ethical decisions are pushed aside owing to which business factor: Desire for revenue Low-cost pressure

Low-cost pressure

A company that feels high pressure to localize and low pressure to globally integrate might select which general international strategy? Global International Multidomestic Transnational

Multidomestic

Which of the following is true of the theoretically ideal free trade area? Aspects of production can be exchanged with member countries. Countries within the area are not allowed to develop trading policies with countries not in the agreement. No discriminatory tariffs, quotas, subsidies, or administrative impediments are allowed to distort trade between members. The countries within the free trade area must use the same currency. Members within the agreement must have similar monetary and fiscal policies.

No discriminatory tariffs, quotas, subsidies, or administrative impediments are allowed to distort trade between members.

A company manufacturing a perishable product, that needs to be locally responsive, while ensuring quality product would want to select which method: insourcing offshoring outsourcing

Offshoring

Examining the external environment such as the political and economic environment is part of which model used during the strategy process? PEST(LE) Porter's Five Forces SWOT VRIN

PEST(LE)

Which of the following correctly describes the importance cultures to IB: Most companies can leave a beloved U.S. product as is (with no localization changes)and sell in a foreign country Products which did not properly localize have lost millions for major MNCs. Products whose brand is not known around the world need to make sure they localize the product to local culture since the brand is not already known

Products which did not properly localize have lost millions for major MNCs.

Which advancing technology will allow for better real time decision making at faster speeds? Cryptocurrencies Robotics Virtual reality Quantum computing

Quantum computing

The microfulfillment use of which technology is predicted to be a major industry disruptor at a "hyper-local" level? Cryptocurrencies Robotics Virtual reality Quantum computing

Robotics

What is a reason for why small-scale entry into foreign markets make it difficult to build market share? Small-scale entry necessitates rapid entry into a foreign market. Small-scale entry is associated with a lack of commitment demonstrated by the foreign firm. Small-scale entry leads to strategic commitments. Small-scale entry wastes valuable resources that could be more effectively used for larger commitments. Small-scale entry leads to increased exposure to a foreign market.

Small-scale entry is associated with a lack of commitment demonstrated by the foreign firm.

Technology has overall __________ the pace of global business Sped up Slowed down

Sped up

Since its inception to today, the primary focus of GATT rounds focused on which topic? Economic development Global economic security Tariff reduction

Tariff reduction

Customs union focus on reducing which protectionism measure: Quotas Subsidies Tariffs VRAs

Tariffs

What were the two institutions established at Bretton Woods? The Fed and the IRS. The United Nations and the World Trade Organization. The International Monetary Fund (IMF) and the World Bank (WB). The European Central Bank (ECB) and the World Bank (WB). NAFTA and EFTA.

The International Monetary Fund (IMF) and the World Bank (WB).

What is the key factor driving the trend of increased globalization? The changing technology allows for faster communication, information dispensation, and transportation. Education and living have been standardized worldwide. International organizations like the International Monetary Fund (IMF) have promoted the spread of globalization. More financial support is available to poorer sectors, like agriculture. More global airports and ocean ports have opened up logistics for faster trade.

The changing technology allows for faster communication, information dispensation, and transportation.

If a government controls the rate of monetary growth, which of the following statements is true? The country's future inflation rate may be low. The country's currency will be overvalued. The country will see a good number of companies not funded by taxation. The country will see an overabundance of foreign investors, creating a conflict between supply and demand. The country's investors will seek to invest overseas.

The country's future inflation rate may be low.

What is a benefit of the geocentric staffing policy? It requires less documentation to employ foreign workers. It is a low-cost policy that is easy to implement. It allows the company to use a localization strategy. It provides the company freedom to select the best traits from each culture. The firm is able to use human resources to the best of its ability.

The firm is able to use human resources to the best of its ability.

Utilitarianism approaches to ethics hold that the moral worth of actions or practices is determined by what? Their net worth The profit margin they earn Corporate determination Their consequences Management decisions

Their consequences

The top 20 countries for inward FDI are all developed nations: True False

True

Of the following, which one is broadly considered ethical in IB? Moving highly polluting production plants to countries that have lax pollution control laws Bribing government officials in order to secure a contract Undertaking social investments in host countries Polluting resources that are considered global commons Creating social programs that may benefit some groups but hurt others

Undertaking social investments in host countries

When a company acquires a second company it uses which method of entry: Franchise License agreement Strategic alliances Turnkey operation Wholly owned subsidiary

Wholly owned subsidiary

Cryptocurrencies like Bitcoin unlike currencies like the U.S. dollars are not tied to what? a business a bank an induvial person ****************************************************************************

a bank

Taisei Corporation, a Japanese company, negotiated a deal with a foreign country in which Taisei Corporation will build Marmaray—a rail transport project in the Turkish city of Istanbul. The project comprises an undersea rail tunnel under the Bosphorus Strait and the modernization of existing suburban railway lines along the Sea of Marmara. The Taisei Corporation agrees to be repaid with part of the resulting output from the transportation system (that is, the fees collected to ride the subway) as partial payment over a 20-year period. This is an example of __________. switch trading a buyback a counterpurchase bartering discount financing

a buyback

The final phase in the strategy process is: analysis assessment evaluation implementation

assessment

Restricting the place distribution to only certain retailers I known as: channel exclusivity channel strategy concentrated exclusivity concentrated strategy

channel exclusivity

Indirect verbal styles on Hall's Typology are often found in which culture type: collectivist and high context collectivist and low context individualist and high context individualist and low context

collectivist and high context

Karl Marx is often associated with __________. aristocrats capitalists individualists communists environmentalists

communists

With outsourcing quality control by the company tends to: increase decrease

decrease

FDI typically directly provides the receiving company all of the following except: education money management resources technology

education

A country that enacts a total cessation of trade with a foreign nation has enacted which trade policy instrument? embargo tariff regulatory trade restriction voluntary export restraint

embargo

Michael Porter's research on why some nations succeed and others fail in international competition led him to theorize that four main attributes promote or impede the creation of competitive advantage. These include __________. political calm, free local markets, a motivated population, and strong infrastructure firm strategy, structure and rivalry, demand conditions, factor endowments, and related and supporting industries cultural relativism, agnostic religious beliefs, economic stability, and government support for its people strong relations with neighboring nations, a strong national defense force, a strong national infrastructure, and high technological advancement female leadership in government; an open social culture; many, but smaller, corporations; and respect for national elders

firm strategy, structure and rivalry, demand conditions, factor endowments, and related and supporting industries

A group of countries allowing the free flow of goods and services with each other as a trade policy in a specified region is known as a(n) __________. free trade area command economy efficient market foreign exchange market location economy

free trade area

A new operation in a new foreign market is known as: acquisition greenfield investment merger

greenfield investment

Today, outsourcing is often very controversial within the ________ company's population. home host

home

A company can have a high growth rate if it develops goods of services locally and then sells them internationally. The money made from this strategy is likely to be greater if __________. the product is already being marketed by local companies in the countries that the company does not deal with the product has tariffs associated with foreign manufacturers indigenous competitors lack comparative product in the nations that the company enters there is high inflation in the countries that the company does business with the product is recognized to be very expensive in the home country of the company

indigenous competitors lack comparative product in the nations that the company enters

Country X's government supports its citizens having complete freedom in their economic and political pursuits; Country X's ideology is "private entrepreneurship over public entrepreneurship." In this situation, it can be said that Country X most likely practices __________. totalitarianism socialism individualism communism

individualism

Huang, a Vietnamese citizen, is working as a very successful manager in the Vietnamese branch of a German company. Because of his success, he was assigned a temporary posting at the headquarters in Germany. In this situation, he is known as a(n) __________. repatriate inpatriate local-country national legal alien parent-country national

inpatriate

Under a "pegged currency" rate regime, a country will __________. arbitrarily determine what currency will be the basis for all others for a given period of time intervene in the value of a country's currency instead of allowing the natural state of supply and demand to determine the currency's value link the value of its currency to that of a major currency fix the value of currency to replace it with a foreign currency if and when the electorate votes on it

link the value of its currency to that of a major currency

Loss of unified global product can be a direct side effect of: localization positioning guerilla marketing

localization

The part of supply chain management focused on the procurement and movement of materials is: logistics manufacturing production

logistics

When a company is deciding on whether to produce a product in house or contract another company for production this is known as: insourcing decision make or buy decision outsourcing decision

make or buy decision

Most facial expressions, unlike hand gestures, are: determined by the subculture of the area determined by the culture of the area not culture bound

not culture bound

An explicit goal of many trade agreements is not only economic growth but also: education growth increased heath peace

peace

The variation is customs and norms leads for the necessity of international businesses to vary: hiring practices performance appraisals production procedures

performance appraisals

Changing where a product is sold from a grocery store to a convenience store is a localization change under which of the 4 P's? place price product promotion

place

Which of the following influences is responsible for many interventions in trade by governments? culture economics politics

politics

The Parker ballpoint pen company thought that, in Spanish, the word "embarazar" meant "to embarrass," when, in fact, it meant "to impregnate." So, their ballpoint pen advertisement in Mexico that was supposed to have read, "It won't leak in your pocket and embarrass you," actually meant, "It won't leak in your pocket and make you pregnant." This mistake could have been avoided if __________. the Mexican people learned the English meaning of the word the company had better educated its Mexican customers the company had learned the local language the company had engaged in more advertising and promotion the company had a larger budget for Mexican advertising

the company had learned the local language

Utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by __________. their consequences what church leaders believe is ethical or right an overarching agreement with the values and norms that are cross-cultural the underlying meaning of the action or practice the acceptance of those practices by international governments

their consequences

Country A takes control over the oil sector in the country. This forces U.S. producers operating in Country A out of the market. This is an example of __________. privatization totalitarianism deregulation communism

totalitarianism

A common law system is based on __________. tradition, precedent, and custom common language and common currency independent values and norms common political values economics, politics, and regulations

tradition, precedent, and custom